Analysis of the actual costs involved in biomass feedstock energy as an alternative energy source. Comparison to current fossil fuel costs, other alternative energies and return on investment.

Biomass conversion has been advertised as the answer to all the environmental and energy needs of the world, but what is the true cost of biomass feedstock energy? The cost of the biomass generation of energy or biofuels can vary depending on all of the many different factors involved. The processes used to generate the energy from biomass will affect the cost, because some processes require more external energy while others, like gasification, do not require an external heat source and are self sustaining thermally.

Power plants that use biomass to generate energy and fuel may face higher feedstock costs, because of a shortage of forestry and agriculture wastes. Locating these plants close to abundant sources of biomass can help reduce these costs. The system design of the facilities will also affect the total cost of the energy. Some biomass conversion energy plants have a cost of between five to six cents for each kilowatt hour, on average. By comparison, using natural gas to generate energy or power costs an average of two to three cents for each kilowatt hour generated. Coal can create a megawatt hour of power for forty eight dollars on average, and nuclear power can generate one megawatt hour for thirty five dollars. This means that the biomass generation of power is not as cost effective as many other sources, when only the financial cost is considered. Ethanol can be produced for an average of one dollar and ten cents a gallon, compared to gasoline that can be as high as three or four dollars at times. Biodiesel can be generated for as little as an average of one dollar or less per gallon, compared to traditional diesel which is still around three dollars a gallon.